Question:   If I can't withdraw funds penalty free from my 401(k) plan to purchase my first home, can I roll it over into an IRA and then withdraw that money to use as my down payment?

Answer:   You can roll funds from a 401(k) to an IRA to be able to take a penalty free distribution to purchase your first home if:

• You are receiving a distribution from a 401(k) that is eligible to roll over into an IRA
• You meet all of the qualifications for an IRA distribution for a first-time homebuyer
  

Your plan administrator is required to notify you before making a distribution from your 401(k) plan whether that distribution is eligible to be rolled over into an IRA.